At 11:14 am on May 5, Vietnamnet outlet published the article “Vinhomes, Mobile World to reduce personnel: Difficult choices of enterprises.” Not long after the article was published, this outlet withdrew the name Vinhomes from the article title, and renamed the article as “Behind the wave of staff reductions of Mobile World and large enterprises.” This shows that, once again, VinGroup has manipulated Vietnam’s media.
An article on Vietnamnet said that in the first quarter of 2023, Vinhomes (stock code VHM) sharply cut the number of direct employees. In the first quarter this year, Vinhomes cut more than 1,500 people. Many other real estate enterprises also cut staff sharply in the past 2 quarters, such as Dat Xanh, Novaland, Phat Dat… In the first quarter of 2023, Dat Xanh (DXG) cut thousands of employees, down more than 1,000 jobs, reduced one third from the beginning of this year. Novaland continues to cut staff in the context of restructuring because of liquidity loss due to heavy debt.
Just a week ago, the press said, Vinhomes of billionaire Pham Nhat Vuong earns more than VND132 billion ($5.5 million) per day- a desirable number for any real estate business at this time. However, in the previous report, we suspected that this number provided to the media is not the real number. Because Vietnamese businesses now have two systems of books, one type of book is made up for publication and the other is true. Real accounting books are secret numbers, only business leaders know.
Most Vietnamese enterprises use a false accounting system to announce to the press, the purpose is to attract investors. They make less knowledgeable investors fall into traps, contribute capital for them. Therefore, many companies, when self-reporting their financial statements, make huge profits, but when independent auditors get involved, they turn out to be losses. Some observers doubt Vinhomes’ profit figure of VND132 billion per day.
Mass layoffs are a symptom of a struggling business. They squeeze the budget, squeeze the scale, so they lay off employees. If it is said that Vinhomes makes a profit of VND132 billion per day and fires a series of employees, this is hard to believe. Perhaps, signs of Vinhomes’ exhaustion are starting to show? More time is needed to track this business.
Recently, Vinhomes pledged to support VinFast $1.5 billion. This is a real number or an imaginary number is still unknown. Because this money is transferred slowly, according to the schedule. In the immediate future, this donation of Vinhomes, along with Mr. Vuong’s promise to pay up to $1 billion for VinFast from his own pocket, has strengthened the morale of investors who have missed out on contributing capital to VinFast. This pledge prevents investors from fleeing.
$1.5 billion is a lot of money. In the situation of laying off thousands of employees, where does Vinhomes get the money to provide enough for VinFast to burn? Very difficult, the problem of stable development for VinFast today, for Mr. Pham Nhat Vuong, seems impossible, when foreign capital cannot be mobilized.
Investors of VinFast are watching, see how healthy is Vinhomes, a $ 1.5 billion sponsor for VinFast? If they knew Vinhomes was in poor financial health, a wave of selling its shares would happen sooner or later. Therefore, the Vietnamnet newspaper published an article about the mass layoff of Vinhomes employees, which is very detrimental to this business, even detrimental to VinGroup. Because Vinhomes is acting as a prop for VinFast, and Vinhomes cannot stand on its own, VinFast will have to fall anyway.
Pham Nhat Vuong jumping into technology is a big mistake. Gasoline cars have failed completely and now it’s electric cars. The business of electric cars burn more money than that of gas cars. Some people have guessed that the life expectancy of VinFast electric cars is even shorter than that of gasoline cars. Wait and see what’s the truth!
Thoibao.de (Translated)
